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Tariffs

India Among Top Countries Facing US Tariffs Amidst Ukraine Invasion

Strategic Insights

— 1 min read

India has found itself at the center of US President Donald Trump's trade tariffs, imposed on countries buying oil from Russia, with a 25% duty kicked in on August 8, and another 25% set to impose on August 28. India's Prime Minister Narendra Modi has spoken with Brazil's Luiz Inacio Lula da Silva about the tariffs, while Russia and China have supported India's position as a sovereign country with the right to choose its trade partners.

Key Takeaways:

  • India, along with Brazil, is one of the two countries facing a 50% trade tariff rate imposed by US President Donald Trump, with the other five countries on the list being Syria, Laos, Myanmar, and India leading the five economies in terms of size.
  • The tariffs imposed on India are "penalty" for buying Russian oil, as per Trump, and are expected to kick in entirely on August 28, after a 21-day period.
  • Indian Prime Minister Narendra Modi has spoken with Brazilian President Luiz Inacio Lula da Silva about the tariffs, which are seen as a negotiating tactic at this stage.
  • Other countries, including China and European nations, have continued to import Russian oil, highlighting the inconsistency in Trump's rationale.
  • Russia and China have supported India's position as a sovereign country with the right to choose its trade partners, with Russia's spokesperson Dmitry Peskov stating "Sovereign countries have the right to choose their own trade partners."
  • The Chinese ambassador to India, Xu Feihong, has criticized Donald Trump, stating "Give the bully an inch, he will take a mile."

Statistics:

  • 50% tariff rate imposed by US President Donald Trump on India and Brazil.
  • 25% duty kicked in on August 8, with another 25% set to impose on August 28.
  • Review of tariffs deadline may be extended another 90 days for China.
  • 21 days' notice before the second round of tariffs on India comes into effect.
  • Ukraine war started in 2022.
  • Chinese ambassador to India, Xu Feihong, posted "Give the bully an inch, he will take a mile" on social media.

Sources:

  • "US Imposes Tariffs on Oil from Russia, India, and Brazil" - NYT.
  • "India faces US tariffs over Russian oil buy: 'Sovereign countries have right to choose trade partners'" - AFP.
  • "US Commerce Secretary: Deadline for deal with China may be extended" - Business Standard.
  • "Give the bully an inch, he will take a mile" - Chinese ambassador to India, Xu Feihong, posted on X.

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